Colombia’s online gambling market has been on a steady rise, contributing significantly to the country’s economic growth. In the second quarter of the year, the revenue reached a staggering COP10bn, showcasing the sector’s importance in the nation’s overall GDP growth of 2.1%.
The National Administrative Department of Statistics (DANE) highlighted online gambling as a key driver of economic growth in Colombia. According to DANE director Piedad Urdinola, recent sporting activities, such as the Copa América tournament where the Colombia national team made it to the final, played a significant role in boosting online betting.
Colombian gambling regulator Coljuegos’ president, Marco Emilio Hincapié, revealed that sports betting accounted for 47% of the total gross gaming revenue (GGR) nationally. Localised games like bingo and casino followed closely behind with 33% of GGR, while lottery games AstroSport and Baloto generated 13% and 7% respectively.
Hincapié attributed the sector’s strong contribution to the economy to the advancements in regulation and control of illegal activities. He also pointed out the positive growth seen in online betting during major sporting events like the Copa América and the Euro Cup.
Colombia made history in 2016 as the first Latin American country to regulate online gambling with the Egaming Act. The tax rate for operators is set at 15% of GGR, with variations based on the return-to-player (RTP) rate.
The increasing revenues from online gaming are benefiting the health sector, with nearly 20% growth in monopoly revenues paid to Coljuegos this year alone. Hincapié mentioned that online betting has already contributed COP231.3m to the health of Colombians.
Despite the success of the gambling sector, Hincapié emphasized the need for innovation to further boost the economy and increase state contributions. He expressed optimism about surpassing projections and reaching a collection of over $1bn by the end of the year.
In conclusion, Hincapié reiterated the positive impact of the gambling sector on Colombia’s economy and overall health. The industry’s growth is expected to continue, making it a key player in the nation’s economic landscape.
